BUS642 Business Research Methods & Tools

1

Running Head: THE FALL OF SONY CORPORATION

The fall of Sony Corporation

BUS642: Business Research Methods & Tools

July 6, 2016

2

THE FALL OF SONY CORPORATION

Sony Corporation

Introduction

Sony Corporation was started by Masaru Ibuka in the aftermath of Japan’s defeat during the

Second World War. It is the leading Japanese manufacturer of electronics, video games and

entertainment products. Sadly, Sony Corporation has lost its significant market share in recent

times. These occurrences have led to constant losses as evidenced by the company’s books of

accounts. This research proposal is intended delve into the problems that are affecting Sony

Corporation and how the company’s market share and profits have been plummeting

considerably. Therefore, the main aim of this project is to understand why the company has

continued to lose a major chunk of its market share despite its initial market dominance around

the 1980’s and the 1990’s (Beamish, 1999). In the process, the proposal will help understand the

nature of the consumers of electronics products in the market as well as the innovation levels that

companies in this industry have to maintain in order to become relevant going into the future.

Since the student is a former employee of Sony, it is possible to effectively highlight the key

issues that have since affected the company and the necessary actions that ought to have been

taken to ensure the business did not plummet financially as the case turned out to be.

Problem Statement/Background

In the context of the consumer electronics industry, globalization has changed the need forth

innovation and the rate at which it takes place. Companies have grown rapidly in size as well as

the number of businesses in the industry. Consumption of electronic goods has increased as well

due to the digitalization of all the aspects of the daily life such as work, cooking, and washing.

3

THE FALL OF SONY CORPORATION

Electronic goods are considered to be vital in everyday life therefore the sales by companies in

the industry are expected to be booming throughout the year.

Several research projects have been conducted concerning Sony. They are mainly aimed at

showcasing how the company grew from a local company into a multinational corporation.

Research has also effectively documented the impact of new entrants on the market share of

Sony. Beamish (1999) argues that several case studies have been conducted with regard to the

decline of Sony in the industry as well as the changes regarding what company has done to

combat the current trend in the enterprise.

Research Objectives

The target of this study is to determine the factors that influence the market share of Sony in

the consumer electronics market (Kothari, 2004). There are many factors which influence a

company when it is operational. Adelstein & Stucky (2012) asserts that the factors that influence

the operations and market share of Sony are quite different from those that influence a company

in the hospitality sector or any other variation. This study will analyze the market broad objective

that focuses on the following specific targets.

i. To investigate the impact of new entrants in the consumer electronics market.

ii. To study bad decisions made by management that influence the success of a company

over the long term.

iii. To identify the current trends in the market and the positives that companies can draw in

order to become successful.

Research Questions

4

THE FALL OF SONY CORPORATION

1) How does the level of innovation in a company affect its market share?

2) What management-based factors contribute to the drop of revenue collection of the

enterprise?

3) What measures can be implemented in the company to improve the current market trend

of the enterprise?

4) What are the factors that contribute to the market share of an electric company?

Significance of the Study

The study is important since it highlights the failures and successes of a well-known

company. Adelstein & Stucky (2012) argue that even the most successful companies in the world

have problems that they have to deal with. The case of Sony is not unique but it warrants

research in order to appreciate what caused the rapid decline of the once major electronics

manufacturer. From this research, other upcoming companies in the electronics industry can

draw lessons and learn how they can ensure they are operating in a more effective manner. This

same study will also showcase what future innovators and business owners need to avoid and the

need to implement and ensure the company does not suffer the consumer goods cycle trap just as

Sony did in the market.

Ethical Concerns

Just like any type of a research project, there are a number of ethical concerns that the student

will have to think about when undertaking this research. Sony Corporation is a company that is

known all over the world. Being a multinational company, it touches different people, cultures

and ethnicities through its products.

5

THE FALL OF SONY CORPORATION

That being the case, it is important to understand how the results of this research will affect the

different categories of customers that Sony currently serves.

The implications might be daunting and therefore it is important to appreciate their degree.

Even though Sony Corporation has failed to live up to expectations and its revenues have been

plummeting, some revelations might prove to be quite unappealing to the management of the

company and even some sections of the company’s customer base. Finally, the manner in which

the results of the research are presented might also affect the overall image of the company. All

these are ethical concerns that need to be addressed.

Research Design.

The student is a former employee of Sony Corporation, therefore it is possible to know the

company quite well. However, this interview will focus on some employees who have been in

the company for quite a long time now in order to understand their challenges, what ails the

company and what major steps can be taken in order to change the fortunes of Sony as a whole.

A considerable chunk of the research content will be drawn from the internet, mainly from

credible academic sources in order to build on the acceptability of the final product.

Data Sampling

Data about Sony Corporation will be sourced from the internet. The most important pieces of

data will be related to the company’s financial performance over time since it came into

business. The one-on-one interviews will also help in gathering the best sets of data in this

process.

6

THE FALL OF SONY CORPORATION

Secondary Data

There are different sets of secondary data that could be used in order to test the hypothesis in

this case. Secondary data would most definitely be very helpful in this case since it is probably

the only best way to understand the situation at hand. The internet is one of the best secondary

information resources that can be used in this case. There are lots of articles online that talk

about the fall of Sony Corporation. Newspapers and magazines will also come in handy in this

case. Since there are lots of expert opinions on the state of affairs at Sony and what has caused

the company’s profits to plummet to such an extent (Triendl, 1999).

Measurement and Measurement Scales

If a survey were to be used in testing the hypothesis in this case, there are two main

measurements that could be used. The most ideal measurement is to apply both qualitative and

quantitative measurement. This means that there is need to appreciate both fiscal data about the

performance of Sony and the expert views about the operations of the company. From the data

received from both primary and third-party sources about the company, it is possible to apply the

right mathematical arithmetic to appreciate what is really ailing Sony Corporation (Triendl,

1999).

Research plans

The collection of data during this research will be done mainly through observations,

interviews and surveys. However, interviews and surveys will be at the pinnacle of the research

project. Observations will mainly be carried out at different Sony Corporation plants with the

aim of finding out how employees go about their daily activities, how supplies are sorted and

how finished goods are moved to the distributing agents from the manufacturer (Triendl, 1999).

7

THE FALL OF SONY CORPORATION

Interviews on the other hand will mainly involve middle-level managers of the company. These

are the managers who link up the operational level with the executive level of the organization.

They are best placed to have a good idea of what ails the company. Therefore, the interviews

with such participants will be based upon issues of why the company profits have been

dwindling and why Sony as a company is currently finding it difficult to remain relevant in the

current market setup (Triendl, 1999). Some of the questions which can be posed to the

participants include but are not limited to;

• Do you think Sony Corporation has been successful?

• How do you rate the operations of Sony Corporation?

• Why do you feel that Sony Corporation has not lived up to expectations?

• Sony Corporation has been dwindling in profits, what might have caused this outcome?

• What can be done in order to restore Sony Corporation back to its lost glory?

Surveys will be done mainly through the use of questionnaires and random interviews on

random groups of people who might have ideas about Sony Corporation, how the company came

into being and how it has been operating. The main essence of surveys is to solicit for varied

views from people with different knowledge levels regarding the state of affairs at Sony

Corporation. The good thing with surveys is that they can be quite helpful in finding out

insightful information that can help to better inform the overall hypothesis of the research

(Triendl, 1999).

8

THE FALL OF SONY CORPORATION

References

Adelstein, J., & Stucky, N. (2012). How Sony Is Turning into a Ghost in Japan and Around the

World. Retrieved June 19, 2016, from http://kotaku.com/5960411/how-sony- is-turning-

into-a-ghost-in-japan-and-around-the-world.

Beamish, P. W. (1999). Sony's Yoshihide Nakamura on Structure and Decision Making. The

Academy of Management Executive, 13 (4), 12-16. Retrieved June 19, 2016, from

ProQuest Database.

Kothari, C. (2004). Research Methodology: Methods and Techniques. Daryaganj, Delhi, IND:

New Age International. Retrieved June 19, 2016, from http://www.ebrary.com.

Triendl, R. (1999). Sony Restructure to Embrace Digital Economy. Research Technology

Management, 42 (5), and 4. Retrieved June 26, 2016 from EBSCOhost Database.